Power Coops Owe P20-B

MANILA, Philippines - A number of electric cooperatives nationwide could lose their power supply unless they settle the P20-billion debts they owe to power suppliers.

A power shutdown could leave millions of the cooperatives' customers in the dark.

The poor credit of electric cooperatives poses a serious problem to the power generators or those supplying electricity to power utilities which distribute it to residential end-users and businesses.

Based on data gathered from the National Electrification Administration (NEA), at least 10 electric cooperatives across Luzon, Visayas and Mindanao have been served or about to be issued notices of supply disconnection - either by the Wholesale Electricity Spot Market (WESM) or by the generation companies.

WESM served notices of suspension to Isabela I Electric Cooperative (ISELCO 1) in Northern Luzon and Camarines Sur II Electric Cooperative (CASURECO 2) and CASURECO 3 in the Bicol region. This means that the cooperatives can no longer draw part of their supply from the electricity spot market. Once the power to the cooperatives is cut off, their customers will suffer from brownouts or outages.

The other problem cooperatives are Lanao del Sur Electric Cooperative (LASURECO) in Mindanao, which has the biggest arrears: P5 billion; and the Albay Electric Cooperative Inc. (ALECO) in Bicol which owes the electricity spot market over P1 billion dues.

Also facing cut-offs are Samar 1 Electric Cooperative, Eastern Samar Electric Cooperative and Northern Samar Electric Cooperative in the Visayas grid.

NEA Administrator Edita S. Bueno said the cooperatives' P20-billion debts to the state-run electricity supplier Power Sector Assets and Liabilities Management Corporation (PSALM) and WESM include current obligations include restructured value added tax (VAT) charges and costs relating to power account restructuring.

However, the electric cooperatives' unsettled obligations with private power generators have not been factored in.

Recently power to Pantabangan Municipal Electric Service was cut off because it could not pay P80 million worth of debts with First Gen. Power was restored several days after.

NEA has explained that many of the electric cooperatives have been working out payment arrangements with their suppliers.

The generators, however, are complaining that the growing liabilities of the electric cooperatives have been affecting their collection.

The Department of Energy (DoE) is being urged to come up with a policy direction that can help reform the cooperatives financially.


Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • High spirits battle: Asia tycoons vie for cognac maker Louis Royer

    * Louis Royer valued at about $150 mln - sources * Suntory selling cognac maker as part of portfolio reshuffle * Asia cognac demand seen rising 13 pct in 2015-19 -Euromonitor (Adds graphic link) By Denny Thomas and Khettiya Jittapong HONG KONG/BANGKOK, May 30 (Reuters) - Thai billionaire Charoen Sirivadhanabhakdi is considering buying cognac maker Louis Royer, people familiar with the matter said, potentially locking horns with a Philippine tycoon for the French firm amid a forecast …

  • OIC asked to complete review of peace pact with MNLF
    OIC asked to complete review of peace pact with MNLF

    The Philippine government is asking the 57-nation Organization of Islamic Cooperation (OIC) to finally complete the tripartite review process of the implementation of the 1996 peace agreement with the Moro National Liberation Front (MNLF). The review – snagged  for several years as government had its hands full with the peace process with rival faction Moro Islamic Liberation Front (MILF) – tackles how the 1996 peace pact with the MNLF has been implemented and centers on the three remaining …

  • Alleged Binay dummies appear in Senate probe
    Alleged Binay dummies appear in Senate probe

    Eight of the resource persons ordered arrested by the Senate finally attended the 21st public hearing of the Senate Blue Ribbon subcommittee into the alleged anomalies involving Vice President Jejomar Binay, but the proceedings turned out to be a review of matters previously presented. For over three hours, the subcommittee heard presentations regarding the alleged hidden assets of Binay and the issue regarding the supposed P200 million in kickbacks he received from a deal between the Boy …

  • DOJ wraps up Mamasapano probe
    DOJ wraps up Mamasapano probe

    The Department of Justice (DOJ) is wrapping up its investigation into the “massacre” of 44 members of the Philippine National Police Special Action Force (PNP-SAF) in Mamasapano, Maguindanao last Jan. 25. A joint team of prosecutors and NBI (National Bureau of Investigation) investigators is about to finish the second part,” Justice Secretary Leila de Lima has told congressmen. She was responding to questions raised by former senior police officer and now Rep. Samuel Pagdilao of party-list …

  • APEC meet in Bataan seen to boost tourism
    APEC meet in Bataan seen to boost tourism

    BALANGA CITY, Bataan – More than 2,000 delegates of the Asia-Pacific Economic Cooperation (APEC) and international media outfits are expected to enjoy the splendid coastline of Bagac town, which faces the West Philippine Sea, as they converge for a workshop in this province next month. …

  • DOST opens P54-M research facility
    DOST opens P54-M research facility

    A P54-million research and development facility of the Department of Science and Technology (DOST) was recently opened in Bicutan, Taguig for scientists and researchers to develop technology and techniques to allow Filipino fashion and clothing designers and manufacturers to produce more mainstream products from local, tropical fabrics like piña, banana and abaca. Science Secretary Mario Montejo said the Innovation Center for Yarns and Textiles (ICYT) is the DOST’s flagship effort at reviving …

  • DFA worried about alleged violations of convicted Pinoys’ rights
    DFA worried about alleged violations of convicted Pinoys’ rights

    Philippine embassy officials in Doha have raised their concern with Qatari authorities over coercion and human rights violations in the alleged forcing of three Filipino workers convicted of spying to provide information and confess to the crime. Speaking to reporters, Department of Foreign Affairs (DFA) spokesman Charles Jose yesterday said the embassy has raised the matter during several high-level meetings with Qatari officials and the national human rights committee in Qatar. “Our embassy …

  • US affirms ‘ironclad’ promise to defend Phl
    US affirms ‘ironclad’ promise to defend Phl

    US Defense Secretary Ashton Carter told his Philippine counterpart on Wednesday that Washington’s pledge to defend the Pacific nation remains “ironclad” and called for an end to land reclamation in the South China Sea, officials said. In talks in Hawaii with Voltaire Gazmin, Philippine secretary of national defense, the Pentagon chief “reaffirmed” the strong ties between the two countries and discussed territorial disputes in the contested waters of the South China Sea, where Beijing has been …


Should Aquino be held accountable over the Mamasapano operations?

Poll Choice Options